CHICAGO – Kraft Heinz today posted financial results for its fiscal third quarter and said it plans to divest its North American coffee business as it renews its focus on packaged food and condiments.
The North America coffee business – which includes the Maxwell House, Gevalia, Nabob, Yuban, Tassimo, Ethical Bean and Sanka brands -- is being sold to private equity company One Rock Capital Partners LLC for about $650 million. The sale is expected to close in mid-2027, according to Kraft Heinz, which would retain a 30% equity stake.
In addition to the brands, the acquisition will include coffee manufacturing facilities in Jacksonville, Fla., and Vancouver, B.C., as well as approximately 250 employees who will transition to One Rock.
“This transaction is a meaningful step in unlocking value from our portfolio and will further accelerate the momentum behind our transformation,” said Steve Cahillane, chief executive officer of Kraft Heinz. “We are proud of the role these brands have played in the lives of generations of coffee drinkers, and our continued stake reflects the confidence we have in their long-term potential under One Rock's focused ownership.”
Kraft Heinz said third-quarter net sales declined 2% to $6.1 billion, including a 0.3 percentage point unfavorable impact from foreign currency and a 0.6 percentage point unfavorable impact from divestitures. Organic net sales declined 1.1%.
Overall volumes fell 1.1 percentage points, with North America reporting the sharpest drop at 2.4 percentage points. Kraft Heinz said volumes suffered due to price hikes initiated in recent quarters to offset higher input costs from tariffs, packaging expenses, and war-related transportation costs.
Price was flat overall in the third quarter, with positive price in its emerging markets segment offsetting negative price in both the North America and Europe and Pacific developed markets segments. Volume/mix declined 1.1 percentage points.
“Our 2026 operating plan to turn around the U.S. business and accelerate growth internationally is on track,” said Cahillane. “Relative to last year, our market share, sales, and volume trends are improving in every region. We are increasingly meeting consumers where they are and giving them more reasons to choose our brands.”
Added Cahillane, “As we approach the end of the year, we are raising the low end of our organic net sales outlook, reflecting the momentum we have built. That progress is supported by a strong balance sheet, which gives us the flexibility to keep investing in our brands and our people.”
